Segment Information

6 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Note 11 — Segment Information

The Company’s reporting segments, comprised of the satellite services, commercial networks and government systems segments, are primarily distinguished by the type of customer and the related contractual requirements. The Company’s satellite services segment provides retail and wholesale satellite-based broadband services for its consumer, enterprise and mobile broadband customers primarily in the United States. The Company’s commercial networks segment develops and produces a variety of advanced end-to-end satellite and other wireless communication systems and ground networking equipment and products, some of which are ultimately used by the Company’s satellite services segment. The Company’s government systems segment develops and produces network-centric, internet protocol (IP)-based fixed and mobile secure government communications systems, network management systems, products, services and solutions and provides global mobile broadband service and product offerings. The more regulated government environment is subject to unique contractual requirements and possesses economic characteristics which differ from the satellite services and commercial networks segments. The Company’s segments are determined consistent with the way management currently organizes and evaluates financial information internally for making operating decisions and assessing performance.

Segment revenues and operating profits (losses) for the three and six months ended September 30, 2015 and October 3, 2014 were as follows:

	Three Months Ended						Six Months Ended
	September 30, 2015			October 3, 2014			September 30, 2015			October 3, 2014
	(In thousands)
Revenues:
Satellite Services
Product (1)	$	6,376		$	21,289		$	12,652		$	21,319
Service		133,809			114,647			259,949			224,332
Total		140,185			135,936			272,601			245,651
Commercial Networks
Product		61,983			83,109			123,494			171,701
Service		4,387			3,750			9,631			7,386
Total		66,370			86,859			133,125			179,087
Government Systems
Product		95,301			89,526			195,862			169,033
Service		51,474			46,437			96,120			84,458
Total		146,775			135,963			291,982			253,491
Elimination of intersegment revenues		—			—			—			—
Total revenues	$	353,330		$	358,758		$	697,708		$	678,229
Operating profits (losses):
Satellite Services (2)	$	21,036		$	39,351		$	38,077		$	37,402
Commercial Networks		(22,306	)		(7,253	)		(41,039	)		(13,243	)
Government Systems		19,683			19,016			35,599			29,815
Elimination of intersegment operating profits		—			—			—			—
Segment operating profit before corporate and amortization of acquired intangible assets		18,413			51,114			32,637			53,974
Corporate		—			—			—			—
Amortization of acquired intangible assets		(4,587	)		(4,658	)		(9,397	)		(8,687	)
Income from operations	$	13,826		$	46,456		$	23,240		$	45,287

(1) Product revenues in the satellite services segment for the three and six months ended September 30, 2015 included $6.3 and $12.5 million, respectively, and for the three and six months ended October 3, 2014 included $21.0 million relating to amounts realized under the Settlement Agreement. See Note 8.

(2) Operating profits for the satellite services segment for the three and six months ended September 30, 2015 included $6.3 and $12.5 million, respectively, and for the three and six months ended October 3, 2014 included $39.7 million relating to amounts realized under the Settlement Agreement. See Note 8.

Assets identifiable to segments include: accounts receivable, unbilled accounts receivable, inventory, acquired intangible assets and goodwill. The Company’s property and equipment, including its satellites, gateways and other networking equipment, are assigned to corporate assets as they are available for use by the various segments throughout their estimated useful lives. Segment assets as of September 30, 2015 and April 3, 2015 were as follows:

	As of September 30, 2015		As of April 3, 2015
	(In thousands)
Segment assets:
Satellite Services	$	66,382	$	63,790
Commercial Networks		234,527		217,268
Government Systems		284,963		273,313
Total segment assets		585,872		554,371
Corporate assets		1,659,927		1,604,007
Total assets	$	2,245,799	$	2,158,378

Other acquired intangible assets, net and goodwill included in segment assets as of September 30, 2015 and April 3, 2015 were as follows:

	Other Acquired Intangible Assets, Net				Goodwill
	As of September 30, 2015		As of April 3, 2015		As of September 30, 2015		As of April 3, 2015
	(In thousands)
Satellite Services	$	12,343	$	17,873	$	9,809	$	9,809
Commercial Networks		7,899		1,443		43,972		43,994
Government Systems		20,448		23,024		63,594		63,438
Total	$	40,690	$	42,340	$	117,375	$	117,241

Amortization of acquired intangible assets by segment for the three and six months ended September 30, 2015 and October 3, 2014 was as follows:

	Three Months Ended				Six Months Ended
	September 30, 2015		October 3, 2014		September 30, 2015		October 3, 2014
	(In thousands)
Satellite Services	$	2,765	$	2,765	$	5,530	$	5,530
Commercial Networks		755		373		1,251		715
Government Systems		1,067		1,520		2,616		2,442
Total amortization of acquired intangible assets	$	4,587	$	4,658	$	9,397	$	8,687